If you drive, you might have noticed a bit of a spike in prices at the pumps recently. This increase, which is one of the biggest jumps in the past 15 years, had been predicted by experts who have also be closely monitoring the rising cost of oil.
One of the leading factors contributing to this rise in price is undoubtedly rising tensions in the Middle East, which has caused the cost of oil to rise as well. With these factors outside of our control, many homeowners will be looking for clever ways to save money on their home heating oil spend, so to help you in the process, here’s some advice from us on getting great value when costs are rising.
What causes the cost of fuel to rise?
Firstly, knowing some of the key influences on home heating oil process can allow you to be more aware of upcoming changes, and give you a chance to prepare accordingly. These key causes of fuel price increases are:
- Demand and supply: In simple economics terms, the factors of demand and supply which are in an ever-changing state influence the price of oil – as demand goes up, supply goes down, making the oil more expensive, and vice versa. This is why it normally costs more for home heating oil in the winter, when more people need to buy it.
- Relations with oil-producing countries: Rising tensions and political factors contribute to unrest in the major oil-producing countries, and this can cause the cost of oil to increase quite dramatically.
- Production levels and costs of production: The cost of producing oil is substantial, so if there are even slight increases, these are normally passed on to the consumer in the form of inflated prices.
Keeping an eye on the news to see signs of any of these is a good way to stay ahead of the curve and order home heating oil ahead of any significant price changes.
What can you do to save money on fuel when costs are rising?
When you can’t avoid price increases, you need to be clever with your investment instead. Here are a few simple ways you can save money on your fuel bill when costs are rising:
- Order in bulk: Spending more money on something which is already increasing in price might not seem very sensible, but when you order in bulk you will benefit from economy of scale savings, making your cost per litre much more attractive. And, because home heating oil won’t expire or go off, you can order in bulk and keep in your tank until you need it.
- Use it wisely: Now that you’ve topped up your home heating oil, use it in the most efficient way possible. Check your thermostat settings and reduce them by a few degrees to use less of your home heating oil. Also, if your thermostat is programmable, make sure you only have it set to come on when you need it.
- Insulate: Keep your heating where it’s supposed to be – inside your home – with quality insulation in your attic, walls and floors.